Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Equity Linked Term Notes, 25814-25815 [E8-10071]

Download as PDF 25814 Federal Register / Vol. 73, No. 89 / Wednesday, May 7, 2008 / Notices operative delay so that the proposal may take effect on May 1, 2008.11 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–CBOE–2008–51 on the subject line. sroberts on PROD1PC70 with NOTICES Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CBOE–2008–51. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the CBOE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2008–51 and should be submitted on or before May 28, 2008. 11 For purposes only of waiving the operative date of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). VerDate Aug<31>2005 21:00 May 06, 2008 Jkt 214001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–10039 Filed 5–6–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57758; File No. SR–CBOE– 2008–44] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating to Equity Linked Term Notes May 1, 2008. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on April 15, 2008, the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared substantially by the Exchange. On April 30, 2008, the Exchange submitted Amendment No. 1 to the proposed rule change. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons, and is granting accelerated approval to the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend CBOE Rule 31.5(I), which provides the requirements for the listing and trading of Equity Linked Term Notes (‘‘ELTNs’’) on the Exchange. The text of the proposed rule change is available at the principal office of the Exchange, the Commission’s Public Reference Room, and http://www.cboe.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of, and basis for, the proposed rule change. The text of these 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00174 Fmt 4703 Sfmt 4703 statements may be examined at the places specified in Item III below. CBOE has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Rule 19b–4(e)3 under the Act provides that the listing and trading of a new derivative securities product by a selfregulatory organization shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b–4,4 if the Commission has approved, pursuant to section 19(b) of the Act,5 the self-regulatory organization’s trading rules, procedures, and listing standards for the product class that would include the new derivative securities product, and the self-regulatory organization has a surveillance program for the product class. The Exchange proposes to amend CBOE Rule 31.5(I), which sets forth CBOE’s listing standards for ELTNs, to clarify that the listing and trading of ELTNs on CBOE, including the trading of ELTNs on CBOE pursuant to unlisted trading privileges, is subject to Rule 19b–4(e) under the Act. 2. Statutory Basis Because this proposal clarifies that the listing and trading of ELTNs on the Exchange is subject to Rule 19b–4(e) under the Act,6 the Exchange believes that the proposal is consistent with the Act and the rules and regulations thereunder and, in particular, the requirements of Section 6(b) of the Act.7 Specifically, the Exchange believes that the proposal is consistent with the Section 6(b)(5) 8 requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not 3 17 CFR 240.19b–4(e). CFR 240.19b–4(c)(1). 5 15 U.S.C. 78s(b). 6 17 CFR 240.19b–4(e). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). 4 17 E:\FR\FM\07MYN1.SGM 07MYN1 Federal Register / Vol. 73, No. 89 / Wednesday, May 7, 2008 / Notices necessary or appropriate in furtherance of the purposes of the Act. sroberts on PROD1PC70 with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. you wish to make available publicly. All submissions should refer to File Number SR–CBOE–2008–44 and should be submitted on or before May 28, 2008. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the III. Solicitation of Comments requirements of the Act and the rules Interested persons are invited to and regulations thereunder applicable to submit written data, views, and a national securities exchange.9 In arguments concerning the foregoing, particular, the Commission finds that including whether the proposed rule the proposed rule change is consistent change is consistent with the Act. with section 6(b)(5) of the Act,10 which Comments may be submitted by any of requires that the rules of an exchange be the following methods: designed, among other things, to Electronic Comments prevent fraudulent and manipulative acts and practices, to promote just and • Use the Commission’s Internet equitable principles of trade, to remove comment form (http://www.sec.gov/ impediments to and perfect the rules/sro.shtml); or mechanism of a free and open market • Send an e-mail to ruleand a national market system, and, in comments@sec.gov. Please include File general, to protect investors and the Number SR–CBOE–2008–44 on the public interest. subject line. The Commission finds good cause for Paper Comments approving this proposal before the 30th • Send paper comments in triplicate day after the publication of notice to Nancy M. Morris, Secretary, thereof in the Federal Register. The Securities and Exchange Commission, proposal seeks to clarify that the 100 F Street, NE., Washington, DC Exchange’s listing and trading of ELTNs 20549–1090. is subject to Rule 19b–4(e) under the All submissions should refer to File Act. Therefore, the Commission does Number SR–CBOE–2008–44. This file not believe that the Exchange’s proposal number should be included on the raises any novel regulatory issues. The subject line if e-mail is used. To help the Commission believes that accelerating Commission process and review your approval of this proposal would ensure comments more efficiently, please use that the Exchange’s rules clearly reflect only one method. The Commission will the standards for listing and trading of post all comments on the Commission’s ELTNs and conform the rules to those Internet Web site (http://www.sec.gov/ of other Exchanges without undue rules/sro.shtml). Copies of the delay.11 submission, all subsequent V. Conclusion amendments, all written statements with respect to the proposed rule It is therefore ordered, pursuant to change that are filed with the section 19(b)(2) of the Act,12 that the Commission, and all written proposed rule change, as amended (SR– communications relating to the CBOE–2008–44), be, and it hereby is, proposed rule change between the Commission and any person, other than approved on an accelerated basis. For the Commission, by the Division of those that may be withheld from the Trading and Markets, pursuant to delegated public in accordance with the authority.13 provisions of 5 U.S.C. 552, will be Florence E. Harmon, available for inspection and copying in Deputy Secretary. the Commission’s Public Reference Room, 100 F Street, NE., Washington, [FR Doc. E8–10071 Filed 5–6–08; 8:45 am] DC 20549, on official business days BILLING CODE 8010–01–P between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available 9 In approving this rule change, the Commission notes that it has considered the proposed rule’s for inspection and copying at the impact on efficiency, competition, and capital principal office of the Exchange. All formation. See 15 U.S.C. 78c(f). comments received will be posted 10 15 U.S.C. 78f(b)(5). without change; the Commission does 11 See e.g., International Securities Exchange Rule not edit personal identifying 2130 and NYSE Arca Rule 5.2(j)(2). 12 15 U.S.C. 78s(b)(2). information from submissions. You 13 17 CFR 200.30–3(a)(12). should submit only information that VerDate Aug<31>2005 21:00 May 06, 2008 Jkt 214001 PO 00000 Frm 00175 Fmt 4703 Sfmt 4703 25815 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57750, File No. SR–MSRB– 2007–08] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Granting Approval of Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Rule G–8, Books and Records, Rule G– 9, Preservation of Records, and Rule G–34, CUSIP Numbers and New Issue Requirements, To Improve Transaction Reporting of New Issues May 1, 2008. On November 27, 2007, the Municipal Securities Rulemaking Board (‘‘MSRB’’), filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change consisting of an amendment of its Rule G–8, Books and Records, Rule G–9, Preservation of Records, and Rule G–34, CUSIP Numbers and New Issue Requirements. The proposed rule change was published for comment in the Federal Register on January 17, 2008.3 The Commission received two comment letters about the proposed rule change.4 The MSRB also forwarded to the Commission a comment letter about the proposed rule change received by the MSRB.5 On April 22, 2008, the MSRB filed Amendment No. 1 to the proposed rule change.6 This order approves the proposed rule change as modified by Amendment No. 1. The proposed rule change is designed to improve transaction reporting of new issues and would accelerate the timing for CUSIP number assignment and, with the exception of new issues of shortterm instruments with less than nine months in effective maturity, require 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 57131 (January 11, 2008), 73 FR 3295 (January 17, 2008) (‘‘Commission’s Notice’’). 4 See letter from Leslie M. Norwood, Managing Director and Associate General Counsel, Securities Industry and Financial Markets Association (‘‘SIFMA’’), dated March 28, 2008, and letter from Mary Lee Corrigan, Executive Vice President & Chief Financial Officer and Janis C. Brennan, Vice President & Operations Manager, Griffin, Kubik, Stephens & Thompson, Inc. (‘‘GKST’’), dated April 3, 2008. 5 See letter from Michael Decker and Michael Nicholas, Co-Chief Executive Officers, Regional Bond Dealers Association (‘‘RBDA’’), dated April 1, 2008. 6 In Amendment No. 1, the MSRB responded to the three comment letters and, in response to the comment letters, postponed the effective date of the proposed rule change from June 30, 2008 to September 30, 2008. This is a technical amendment and is not subject to notice and comment. 2 17 E:\FR\FM\07MYN1.SGM 07MYN1

Agencies

[Federal Register Volume 73, Number 89 (Wednesday, May 7, 2008)]
[Notices]
[Pages 25814-25815]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-10071]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57758; File No. SR-CBOE-2008-44]


Self-Regulatory Organizations; Chicago Board Options Exchange, 
Incorporated; Notice of Filing and Order Granting Accelerated Approval 
of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, 
Relating to Equity Linked Term Notes

May 1, 2008.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on April 15, 2008, the Chicago Board Options Exchange, 
Incorporated (``CBOE'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I and II below, which Items have been prepared 
substantially by the Exchange. On April 30, 2008, the Exchange 
submitted Amendment No. 1 to the proposed rule change. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change, as amended, from interested persons, and is granting 
accelerated approval to the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend CBOE Rule 31.5(I), which provides 
the requirements for the listing and trading of Equity Linked Term 
Notes (``ELTNs'') on the Exchange. The text of the proposed rule change 
is available at the principal office of the Exchange, the Commission's 
Public Reference Room, and http://www.cboe.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CBOE included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item III below. CBOE has prepared summaries, set forth in sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 19b-4(e)\3\ under the Act provides that the listing and 
trading of a new derivative securities product by a self-regulatory 
organization shall not be deemed a proposed rule change, pursuant to 
paragraph (c)(1) of Rule 19b-4,\4\ if the Commission has approved, 
pursuant to section 19(b) of the Act,\5\ the self-regulatory 
organization's trading rules, procedures, and listing standards for the 
product class that would include the new derivative securities product, 
and the self-regulatory organization has a surveillance program for the 
product class. The Exchange proposes to amend CBOE Rule 31.5(I), which 
sets forth CBOE's listing standards for ELTNs, to clarify that the 
listing and trading of ELTNs on CBOE, including the trading of ELTNs on 
CBOE pursuant to unlisted trading privileges, is subject to Rule 19b-
4(e) under the Act.
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    \3\ 17 CFR 240.19b-4(e).
    \4\ 17 CFR 240.19b-4(c)(1).
    \5\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

2. Statutory Basis
    Because this proposal clarifies that the listing and trading of 
ELTNs on the Exchange is subject to Rule 19b-4(e) under the Act,\6\ the 
Exchange believes that the proposal is consistent with the Act and the 
rules and regulations thereunder and, in particular, the requirements 
of Section 6(b) of the Act.\7\ Specifically, the Exchange believes that 
the proposal is consistent with the Section 6(b)(5) \8\ requirements 
that the rules of an exchange be designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest.
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    \6\ 17 CFR 240.19b-4(e).
    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any 
burden on competition that is not

[[Page 25815]]

necessary or appropriate in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-CBOE-2008-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-CBOE-2008-44. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-CBOE-2008-44 and should be 
submitted on or before May 28, 2008.

IV. Commission's Findings and Order Granting Accelerated Approval of 
the Proposed Rule Change

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\9\ In particular, the Commission finds that the proposed rule 
change is consistent with section 6(b)(5) of the Act,\10\ which 
requires that the rules of an exchange be designed, among other things, 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \9\ In approving this rule change, the Commission notes that it 
has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds good cause for approving this proposal before 
the 30th day after the publication of notice thereof in the Federal 
Register. The proposal seeks to clarify that the Exchange's listing and 
trading of ELTNs is subject to Rule 19b-4(e) under the Act. Therefore, 
the Commission does not believe that the Exchange's proposal raises any 
novel regulatory issues. The Commission believes that accelerating 
approval of this proposal would ensure that the Exchange's rules 
clearly reflect the standards for listing and trading of ELTNs and 
conform the rules to those of other Exchanges without undue delay.\11\
---------------------------------------------------------------------------

    \11\ See e.g., International Securities Exchange Rule 2130 and 
NYSE Arca Rule 5.2(j)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\12\ that the proposed rule change, as amended (SR-CBOE-2008-44), 
be, and it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-10071 Filed 5-6-08; 8:45 am]
BILLING CODE 8010-01-P